Advertisement
Advertisement

Gold Price Prediction – Gold Experiences Dead Cat Bounce

By:
David Becker
Published: Dec 9, 2019, 22:32 GMT+00:00

Gold prices made a timid attempt at a rally on Monday, following a sharp decline on Friday in the wake of the better than expected US jobs numbers. Prices

Gold Price Prediction – Gold Experiences Dead Cat Bounce

Gold prices made a timid attempt at a rally on Monday, following a sharp decline on Friday in the wake of the better than expected US jobs numbers. Prices traded in a tight range and formed a doji day which is a sign of indecision. US yields edged slightly lower, which the dollar was nearly unchanged, giving gold traders little room to move the yellow metal. Later this week, traders will need to incorporate US retail sales and inflation figures, which will be carefully watched to see how the consumer is fairing. It appears that the US economy is stronger than expected according to the latest Fed models.

Trade gold with FXTM

 

 

 

 

 

Regulated By:FCA, FSCM, SCA, CMA
Headquarters:Mauritius
Foundation Year:2011
Min Deposit:$200
Online Forex/CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading Online Forex/CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. It is the responsibility of the Client to ascertain whether he/she is permitted to use the services of Exinity Capital East Africa Ltd based on the legal requirements in his/her country of residence.
Official Site:
Demo Account:Open Demo Account
Max Leverage:1:30 (FCA), 1:3000 (FSCM), 1:2000 (CMA)
Publicly Traded:No
Deposit Options:Wire Transfer, Credit Card, Skrill, Neteller, PerfectMoney, Local Transfer, FasaPay, , , , Debit Card,
Withdrawal Options:Wire Transfer, Credit Card, Skrill, Neteller, Debit Card, Local Transfer, FasaPay, , , PerfectMoney, ,
Products:Currencies, Commodities, Indices, Stocks, Crypto
Trading Platforms:MT4, MT5,
Trading Desk Type:No dealing desk
OS Compatability:Desktop platform (Windows), Desktop platform (Mac), Web platform
Mobile Trading Options:Android, iOS

 

 

Technical Analysis

Gold prices formed a doji day where the open and close were nearly the same. Prices attempted a weak move higher but were unable to pierce through resistance near the 10-day moving average at 1,464. Additional resistance is seen near the 50-day moving average near 1,481. Short term momentum has turned negative as the fast stochastic generated a crossover sell signal reversing the recent rise in the fast stochastic. Medium-term momentum is turning as the MACD histogram prints in the black with a downward sloping trajectory which points to consolidation.

Fed Models Point to Stronger Growth

The Atlanta Fed’s model is showing that the US economy is doing better than anticipated in Q4.  The Atlanta Fed’s GDPNow model currently estimates Q4 GDP growth at 2.0% up from 1.5% previously.  This compares to its low for Q4 of 0.3% back on November 15.  The NY Fed’s Nowcast model now has Q4 growth at 0.58% down from 0.77% previously.  It also cut its estimate for Q1 growth to 0.66% from 0.98% previously.  While there appears to be a divergence with the two models, what is clear is that growth is far from negative and a recession.

About the Author

David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.

Advertisement